Nov 22, 2024

Peloton Faces Mounting Lawsuits as Employees Claim Unpaid Wages

by Nadia El-Yaouti | Mar 25, 2022
Sign displaying the name "Peloton" on a building. Photo Source: Adobe Stock Image

A class-action suit that was filed in Los Angeles Superior Court at the start of the year accuses pop culture exercise brand Peloton of violating California's labor laws. Among other violations, the suit addresses the company’s failure to pay employees proper minimum wage and overtime pay.

The plaintiff in the suit, Mark Cohen, is a former Peloton Interactive employee who worked as an hourly non-exempt sales associate from November 2016 until December 2021. Cohen details that during his time at the company, he and other employees were denied protection under the state’s labor laws including meal and rest breaks. Cohen also claims that was not reimbursed for the use of his personal vehicle or personal cell phone for work-related tasks.

Peloton has pushed back against Cohen’s complaint and argued in February that the complaint should be heard in federal court as the plaintiff and the defendant are not citizens of the same state. Peloton is based out of Delaware while Cohen is in California.

In the nine-count complaint, Cohen details that he and other employees were not paid the minimum wage and overtime payments they were due. When they worked over 40 hours a week, they were not paid the required time and half for extra hours of work.

Cohen also details that while employees had the ability to accrue vacation days, they were not given their paid time off and were not informed of how much time off they had accrued as stipulated by the state’s labor laws. Under California’s labor laws, when an individual leaves an employer, the employer is required to pay out the cash value of any unused earned paid days off. Cohen alleges that he and other employees were not paid out their unused days.

Cohen’s allegations are not the first of their kind surrounding Peloton. A Minnesota man has filed a similar lawsuit against Peloton regarding allegations that he wasn't properly paid for his overtime work. Additionally, a former warehouse worker in New York shared with the online outlet BuzzFeed similar allegations that employees often worked off of the clock. In Northern California, two warehouse workers, Meagan Hernandez and E’Monii Crumby, have also filed a lawsuit alleging unpaid wages.

The allegations against Peloton come at a rocky moment for the social media-driven exercise company. Amid a slew of layoffs, production issues, and dismal financial forecasts, accusations against Peloton's treatment of employees have cast another shadow on the company.

California is one of the nation's leading states with strict labor laws that favor workers. The state’s labor codes detail strong employee protections such as the final paycheck being due the day of an employee's termination. For individuals who leave their job, they are due all unpaid wages within 72 hours.

The state's labor laws extend protections to all workers regardless of their immigration status. Individuals who feel like their rights have been violated may file a complaint with their local office of the Labor Commissioner. In doing so, employees can seek out lost wages, unpaid wages, and any other benefits offered by their employer.

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Nadia El-Yaouti
Nadia El-Yaouti
Nadia El-Yaouti is a postgraduate from James Madison University, where she studied English and Education. Residing in Central Virginia with her husband and two young daughters, she balances her workaholic tendencies with a passion for travel, exploring the world with her family.

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